What Is the NPV for the Following Project If Its

question 52

Multiple Choice

What is the NPV for the following project if its cost of capital is 12% and its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and ($1,300,000) in year 4?

• A)($1,494,336)
• B)$1,494,336
• C)greater than zero
• D)two of the above

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